N259bn disbursed to businesses in 2018 – BOI

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The Bank of Industry (BOI) has released its 2018 operational report indicating it disbursed N259.6 billion to various business concerns in line with its mandate and government’s industrialization template.

The funds, disbursed between January and December 2018 represents an increase of N147.1 billion (or 130 per cent) when compared to the N112.5 billion credit which the bank provided to businesses in the 2017 financial period.

Speaking with journalists in Abuja, the BoI Chairman, Aliyu Dikko said that out of the N259.6 billion, about N33.9bn was disbursed specifically to entrepreneurs within Micro Small and Medium Enterprises (MSMEs) belt; while balance of N225.7 billion was channelled to support larger enterprises.

On the financial performance, he said that during the period, the group’s total asset grew by 49 per cent from N713.3 billion in 2017 to ₦1.07 trillion in 2018.

Dikko explained that the bank achieved improvement in its total equity as it increased by 12.5 per cent from N241 billion in 2017 to ₦258.3 billion in 2018.

He put the bank’s profit before tax at ₦36.7bn, indicating a 39 per cent increase than the ₦26.4bn which was achieved in the previous year.

The BOI Chairman added that following the impressive financial performance, the management of the bank made a proposal of N2 billion dividend to be paid to the shareholders.

“The amount was unanimously approved by shareholders of the bank.

“The bank’s developmental impact profile and financial performance are fundamental indicators of our success.

“As we celebrate 60 years of our existence in 2019 and move ahead into the future, we will continue to streamline our efforts to ensure that these outcomes continuously align with our core values and the expectations of our stakeholders.”

In his remarks, the BoI Managing Director, Mr Olukayode Pitan said the bank would continue its intervention programme in various sectors of the economy.

In partnership with the Federal Government with respect to its Government Enterprise and Empowerment Programme, a component of the Social Investment Programme, be said the bank facilitated the disbursement of ₦29 billion to 1,550,000 beneficiaries nationwide through its flagship products such as TraderMoni and MarketMoni.

These products, he noted, are specifically aimed at providing soft loans at no interest rate to micro-entrepreneurs.

He said the bank is working with the Federal government in the implementation of the N-Power programme, which is also part of the Social Intervention Programme.

He noted that, under the programme, soft loans worth ₦15.34 billion were provided to 199,989 beneficiaries to purchase work-tools in sectors such as agriculture, health and education.

BOI is Nigeria’s oldest, largest and most successful development financing institution. It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank took off in 1964 with an authorized share capital of 2 million (GBP).

The International Finance Corporation which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank’s authorized share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BOI in 2001, it has been increased to 250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate.

Following a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy.

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